A Comparative Study Of Subsequent Measurement Methods Of Goodwill

Since 2014,mergers and acquisitions have increasingly become a common choice for enterprises to develop themselves.In the process of mergers and acquisitions,goodwill is often accompanied by the generation of goodwill,and the book amount of goodwill is usually relatively large.Due to the lack of effective supervision,this huge asset tends to be quite random in the subsequent measurement,which leads to frequent capital "mine explosion" events in China's a-share market since 2014.It has a certain influence on the smooth operation of our country's economy,and the rights and interests of investors have not been guaranteed.As a result,scholars have considered and studied whether there is an optimization space for the existing follow-up measurement method of goodwill,hoping to find a follow-up measurement method that can better avoid such financial risks and reflect the economic essence,so as to provide real and effective accounting information for financial statement users.Based on such background,this article first has carried on the study to previous scholars have conducted studies and induction,the research on domestic and international goodwill and the subsequent measurement methods of the research status of related theory,with the enterprise's financial report target,and accounting information quality requirements,to goodwill should choose the way to the follow-up measurement of directional guidance;On the premise of this directional guidance,this paper summarizes the shortcomings of the existing common follow-up measurement methods of goodwill,and puts forward a more suitable follow-up measurement method of goodwill--comprehensive method.Then the paper makes a quantitative analysis of the advantages and disadvantages of the comprehensive method and the two common methods of subsequent measurement of goodwill through a specific case,so as to prove that the comprehensive method is indeed superior to the common methods of subsequent measurement of goodwill.In the end,the shortcomings of the synthesis method and the limitations of the demonstration in this paper are explained.The main innovation lies in that: the most basic theory,financial reporting objectives and accounting information quality requirements are used to guide the choice of subsequent measurement method of goodwill,which is conducive to reflecting more high-quality accounting information;Combining the test method of goodwill impairment with the traditional amortization method and analyzing it quantitatively;It is suggested that there is no need to carry out impairment test when there is no obvious signs of impairment,which can help enterprises,especially small and medium-sized enterprises,reduce the cost of mergers and acquisitions,and encourage them to integrate resources by means of mergers and acquisitions.